HK Stock Market Move | After the performance, Zhengzhou Coal Mining Machinery Group (00564) surged more than 4%, and its annual net profit attributable to mother increased by over 20% year-on-year. The revenue structure of the coal machinery sector has been optimized.

Zhengzhou Coal Mining Machinery Group (00564) rose more than 4% after the performance announcement, reaching a 4.11% increase at 13.16 Hong Kong dollars, with a trading volume of 723.12 million Hong Kong dollars. On the news front, on March 28, Zhengzhou Coal Mining Machinery Group announced its 2024 financial results, with operating income of approximately 37.052 billion yuan, a year-on-year increase of 1.73%. Net profit attributable to shareholders of the listed company was approximately 3.934 billion yuan, a year-on-year increase of 20.16%. Basic earnings per share were 2.212 yuan, and a cash dividend of 1.12 yuan per share is proposed. The announcement stated that the revenue growth was mainly due to: 1) the total operating income of the coal machine sector in the reporting period increased by 3.27% compared to the same period last year, with stable and slight growth in revenue in the coal machine sector; 2) the total revenue of the automotive components sector increased by 0.07% compared to the same period last year, with Yaxinke achieving total operating income of approximately 5.039 billion yuan, an increase of 18.94% compared to the same period last year, mainly benefiting from the steady growth in revenue from subsidiary companies and new energy vehicle business, driving overall revenue growth; SEG achieved operating income of 12.419 billion yuan, a decrease of 7.01% compared to the same period last year, mainly due to lower demand in the fuel vehicle market compared to the same period last year, especially the impact of the European market on SEG's sales in 2024. The increase in net profit attributable to shareholders was mainly due to the increase in net profit of the coal machine sector. The net profit of the coal machine sector increased by approximately 0.972 billion yuan compared to the same period last year, with a growth rate of 30.44%. This was mainly due to the optimization of income structure in the coal machine sector, an increase in the proportion of high-profit products in this period's income, contributing to an increase in profit contribution. In addition, the decrease in coal machine material costs also pushed up the overall profit.